tv Nightly Business Report PBS December 6, 2014 1:00am-1:31am PST
report" with tyler mathisen and susie gharib. funded in part by -- arts plus where jim cramer and fellow portfolio manager stephanie link share their investment strategies, stock picks and market insights. you can learn more at thestreet.com/nbr. blockbuster gains. employers were hiring last month adding more workers to their payrolls than they have in years putting 2014 on track for the labor market's best 12 months since 1999. new records and as the dow closes in on 18,000, our guest tonight still finds value in this market. and battle against bacteria. meet the entrepreneur shining a light, a bright one, on the growing problem in the health
care industry. we have all that and more on "nightly business report" for friday, december 5th. >> and good evening, everyone. welcome. now, the job market is partying like it's 1999. and with good reason. not since that year has the u.s. economy been on pace to add so many jobs over a 12 month period. today, the data crunchers formerly known as the labor department reported a spectacular november employment report. 321,000 jobs were added last month. about 90,000 more than economists expected. the gains were widespread among many industries. the national employment rate held steady at 5.8%. hampton pierson looks at the numbers and what they mean for you. >> reporter: employers hire the largest number of workers in nearly three years in november. job gains averaged 27 8,000 for three months after upward
revisions from september and october data. president obama unveiled his own job scorecard. >> so far this year over the first 11 months of 2014, our economy created 2.65 million jobs. that's more than any entire year since the 1990s. >> reporter: job gains were broad based with employment and professional business services surging by 86,000. retail payrolls increased by $50,000 as stepped up for the holiday shopping season. health care and manufacturing were also strong performers. it's a foundation according to leading economists for improving overall growth. >> it is really an improving economy. 5.8%, the lowest 50 year average. jobs added smoothly per month. it's not a completely healthy economy but improving very rapidly here. >> reporter: the strength of the workweek increased to an average
under 35 hours. the highest since the early days of the recession. and average hourly wages under $25 an hour had their biggest one month surge in more than a year. >> it's not only the jobs. it's the hours and the wages. everything is moving into high gear now and it feels more like a boom economy than even a strong one. >> reporter: employment experts say breaking the 300,000 barrier for monthly job growth sets the stable for higher wages. economists say the federal reserve wants to see more than one month of blockbuster job growth with wage hikes before moving up its timetable for raising key short-term interest rates. for "nightly business report," i'm hampton pierson in washington. on wall street, investors were encouraged by that blowout jobs report sending stocks higher and pushing the dow and s&p to new records. the dow rose 58 points and is moving closer to the 18,000
mark. up 11 and s&p added 3 points. today closes the book for the dow and the s&p for this past week, most of the major averages were higher with the blue chip dow leading the pack up three quarters of 1%. oil prices dropped once again. west texas crude down nearly a dollar a barrel at $65.84. the lowest price since 2009. benchmark crude also fell to $70.15, five year low. >> rebecca patterson with the jobs report. chief officer at bessemer trust. we get to the job report but something we have not mentioned just yet. the fact that the dollar hasn't been this strong in eight years. dollar index, 8 year high. the yen, 2.5 year high against the euro. what do you think about that and does it worry you at all? >> it doesn't worry me yet.
right now, i think the dollar is a good thing. it's hard to believe this, but just in 2011, the dollar, if you look at it against the basket of other currencies was the weakest it had ever been since it floated in the 1970s. we were really cheap currency on a global basis. now we're getting closer to long-term averages but the dollar is still cheap. it can still keep rising. right now, this is great news. it helps the purchasing power for u.s. consumers. it helps keep a lid on inflation in america. the fed can move more slowly and that's good for stock markets. right now it's great. i think if i look out a year or year and a half if it continues, especially if it continues quickly against a lot of currencies, then we have to keep a close eye on u.s. exporters, especially manufacturers, to make sure they don't start getting noisy and it b a congressional issue into the election. >> rebecca, you mentioned the fed. we wonder what janet yellin and other policy makers review this
report. they have a meeting coming up pretty soon. what do you think? >> well, it's interesting today because even though we had a great report and the market priced in a higher probability of the fed raising rates in june, right now the market is discounting a 75% chance that we get a rate hike by the june meeting next year. so even with that expectation, the fact that stocks ended higher to me is really good news. will the fed take rates hike hooier in june? i think it's possible with a few more jobs number and wage continue to rise. if we get the jobs and inflation stays muted or eases further with the commodities, i think the fed's preference would be to go as slow as they can to ensure this economy is really self-sustaining. >> the fact that the market rose or at least the dow did rather strongly, does that suggest we have gotten past the point we're so worried about the speed and timing of a rate hike in the future?
>> it definitely helps suggest that, tyler. i do think when we get to that fed meeting when they take out the words considerable time, i.e., saying to us a rate hike is comin we might get jittery in the market. when we get to the fed hike, historically, stock markets paused for a few months but the fed doesn't want to leave anything to your imagination. so i think they are trying to pave the way for this as a non-event for the market. >> so we're coming close to the end of the year. give us your outlook for 2015 when it comes to the markets. higher, lower, the same? >> i think we're going to have another good year for u.s. stock markets and because of that strong dollar, even if other markets are doing well, investors need to be cognizant of the currency weakness and what it means for that return. we're overweight in the u.s. and japanese stocks. we try to remove the yen from the equation in our portfolios. i think our better bet is still
in stocks. we prefer large cap. >> lot to think about that. that was a full tour of the world in 30 seconds. rebecca with bessemer trust. thank you. more on jobs. the 11 months on jobs friday, we ask where the jobs are. we find them everywhere in the country although in this profession, employers are focused on the sky. mary thompson explains. >> reporter: there's a constant need for those who keep the order. air traffic controllers. >> we have to be higher before their 31st birthday. required to retire at 56. that's why the job market keeps going on. >> reporter: running the aviation program at state university. she has two reasons for the stark demand. if f.a.a. is catching up on hiring after last year's sequestration and the 14,000 current controllers close to retirement, having been hired after massive layoffs following a strike in 1981.
the f.a.a.'s hiring fan calls to add 1500 new controllers by 2015, over 10,000 in the next decade. in the past, two key sources provided the f.a.a. the military and 36 schools that made up its collegiate training initiative. schools like long island dowling college. >> focus. situational awareness and multitasking. and you have to have a person who's not going to panic. >> reporter: top graduates of these programs typically earn spots in the f.a.a.'s training program but there's no longer preferential treatment. now the application process is open to the public who must meet certain qualifications and pass a biographical test. not slowing down de anglo blair. >> i wanted to fly jets and
airplanes and avoided, moved to air traffic control. >> reporter: f.a.a. didn't respond about the new system's success or why it was changed. but did pay off for saja-lindsay sudlow. she's looking forward to a job since working at an aviation museum in high school. >> you can get a job anywhere in the continental united states. >> reporter: the job pays well after supervised training, it could be in the six figures. not a bad job to land. in shirley, new york, i'm mary thompson. "nightly business report." >> to read more about the demand for air traffic controllers, go to our web site. nbr.com. license, registration and certificates may be holding back hiring in some industries. the details coming up.
even though the u.s. is on track to add the most jobs in a single year science 1999, cumbersome regulations are being blamed for getting in the way of more jobs. steve liesman with how licensing requirements impact hiring. >> reporter: what do a forest, a man curist and an interior designer have in common? in the country the government requires a license, registration or certificate to go to work. and some states even bartender get the piece of paper. license and registration
requiremen soared from 5% in 1950 to now covering a third of all u.s. workers. economists like university of chicago's steven davis increasingly point to local state and federal rules to explain why the u.s. job market taken longer to rebound. >> business formation, job to job mobility, recovering from a lost job, growing businesses in a way they could hire other people. all of these things are constricted and restrained by unnecessary occupational licensing restrictions. >> reporter: economists don't dispute the need for training and education, especially when it comes to jobs like nurses or paramedics where the providers take their life in your hands. trouble is in places like in california. the job such as an emergency medical technician or emt requires less training than for example an interior designer. >> they are to some extent incumbent protection devices. they often do serve the purpose of driving up wages for the
incumbents but they do that in a way that's horrible to competition. >> reporter: a report by professor krueger, top advisor found licensing and registration can be linked to 18% higher wages. in california, an interior designer requires professional experience, two years at an apprenticeship. those by 20 years ally dahl who is slogging her way through the process. >> the building i work on, i think it's important and necessary to know. >> reporter: also an interior designer working on a public space like a hospital to keep the public safe. economists question whether all of those make a public statement of the providers and professions in the competition. for "nightly business report," steve liesman. it's not enough. where we begin the market focus. missed but did manage to shauk
up same store sales growth and hiked the outlook for the current quarter. investors weren't convinced. shares plunged 16 ppt -- to 5%. gold man conviction buy list and a $3 billion buyback. shares popped to $147.69. francesca is being replaced by the former chief of sigg nah jewelers, cheers and how. popped to $15.19. j.p. morgan has the top performing investment bank. new data revealing the company's revenue of $17 billion a year today, goldman in second place. shares of jm up to $62.70. he likes the stocks.
greg at investment partners. thank you for being back on the show. >> thank you for having me. >> the jobs report, does anything you heard change your investment approach? >> no, not so much. i think that the market got it right today. there wasn't a surge of 500 poinlts in the dow or 30 points in the s&p. it was a moderate reaction and i think already sort of priced for perfection. >> business as usual for your in your portfolio? >> i think it's time to look at the laggards. there's 11 sectors and one is super underperforming. the rest are fine. maybe it's time to bottom feed. >> you like value. you like to look for it. the things that other people aren't looking and your first choice tonight is a european hedged equity etf. that would be a value play right now. why do you think europe and this
big cap oriented etf is poised to move up? >> well, we're coming out of qe. and they're going in. >> apparently. >> apparently. and suspect they'll have to get all the countries to agree. if that's the case, you have a euro which weakens. you're going to have cheap energy prices, cheap laborer. their labor markets are so weak and cheap capital because rates will be low. >> weak euro will help their exporting. >> correct. that's the theory. companies that are in the etf like siemens. they'll be important to the products. >> greg, over the summer you were talking about exxon mobile saying this was a good stock to own. at that time, trading at $300 and at $93 and you're recommending it now. how good can it get with exxon?
>> this is not a play i think you're going to see something occur immediately. but with energy prices this low and so many energy companies struggling, especially if they have lots of debt, they have to sell properties. so the big criticism with exxon is they're not growing their production fast enough. so they could be the mother ship that all these properties wind up moving into. they have a solid balance sheet, decades of history. it's just a logical progression. >> do you have a target price on exxon, 93 now? >> going at 18 months, i think you could see it 10% or 15% higher. >> i'd rather be exxon in a falling market than one of the smaller producers at one of the higher leverage ones. third choice is memorial production partners. it's a master limited partnership with a 16% yield. often when i see yields that high, i go wait that's a
problem. in this case with the structure, i assume it's absolutely not. >> well, of all the mlps and they've been popular with the hir hi hirees, you'll want the production hedge so it's not hit as hard. they were smart enough to do it out five years. they got criticized for that because they'll miss the upside but then prices craters. they're locked in for years selling products at higher prices. so i don't know if they'll be able to maintain that dividend at the same rate going forward but way better position to pay other mlps. >> interesting choice. >> yes, thank you for coming by. have a great weeskd. >> teach me to tie a bow tie next time. >> the entrepreneur who shined
light on a health concern and created a growing business in the process. that the space race is back on and the next stop is the red planet. a huge success today for nasa after launching an unmanned orion spacecraft for 4.5 hour test flight. 3600 miles above the earth flying higher than any capsule since the apollo moon program. the flawless flight in the pacific is the first step towards a manned orion flight to mars. >> that's beautiful to see.
the needle is moving in the right direction on reducing hospital acquired infections. from 2011 through 2013, the number of cases dropped by 1.3 million compared to 2010. it won't replace proper wand washing and cleaning, but the bright idea literally shines the light on a new technology. >> reporter: this light could be pretty big. like a thomas edison kind of big. >> we're going to change the world. >> reporter: colleen costello's life like so many big things had a humble beginning in a small house just off the campus of rensselaer in troy, new york. >> they started to work in the kitchen and get small electrical fires and things like that. >> reporter: 18 months later, just this fall her company vital vio began selling like the kill germs. more specifically, they kill bacteria. >> there's some initial
skepticism. it's a white light you can replace in your ceiling and safe. it's never been seen before. >> reporter: who knows when it might have been seen? if colleen's grandmother hadn't gone into a hospital and wound up with a dangerous infection, mrsa, it's resistant to antibiotics. >> the room needed to be closed down. she had to stay there for significantly more length of time, more doses of medicine to be received. >> reporter: her grandmother is fine now but since, costello is how to reduce the cost of hospital acquired infections. $30 billion to $40 billion in the u.s. when she took entrepreneur ship class, the light was turned on. >> this is a large problem for us all. >> reporter: health care professionals pointed towards ultraviolet lights but not safe for humans. think sun damage.
they bathe in the nightclubht bluish hue. >> as a freshman, you could not get a commercial led bulb. >> reporter: led lights in hand, with james peterson for vio. >> the first 90 minutes, we get 90% reduction in the environment. >> reporter: how? in hospitals, bacteria can appear on services touched often like a door handle. they contain receptors humans don't have. when light from the blue-violet end hits the receptors, a toxic oxygen is produced. so much that it blows up the germs. the lights use more than 200 leds. the computers decide how much blue is included. >> we're able to take our core blue-violet disin ffection and x it with blue to make it white s
testing this. the room of the future, he was skeptical at first but that's changing too. >> it's at a point of an emerging technology that's capturing the imagination of a number of people. >> reporter: and while health care is the primary focus, imagine the benefits in food prep, pharmaceutical work, airplanes and yes, public bathrooms. >> we're doing something important. to impact a way to save lives. >> cool, wish them luck. a couple of years out of college, by the way. they say they've had inquiries as far as south africa, phillipines and the u.k. doing good work. >> we'll hear more from them i'm sure. that is "nightly business report." i'm susie gharib. this is the time of year your public tv station seeks your
support. >> i'm tyler mathisen. thank you for your support. we hope to see you right back here on monday night. >> "nightly business report" funded in part by -- thestreet.com and action alerts plus where jim cramer and fellow portfolio manager stephanie link share their investment strategies, stock picks and market insights. you can learn more at thestreet.com/nbr.
gwen: as protesters take to the streets, washington wrestles with injustice. the pentagon gets a new chief and congress plots a way forward. tonight on "washington week." >> no justice! >> no peace! >> don't shoot! >> i can't breathe! gwen: protests that exploded from coast to coast reached washington. >> too many americans feel deep unfairness when it comes to the gap between our professed ideals and how laws are applied on a day to day basis. >> the united states department of justice is currently conducting an independent, thorough, fair and expeditious federal civil rights investigation into each of these incidents. gwen: what do the cases of michael brown, eric garner and others tell us